Investment Rating - The report maintains a "Buy" rating for the company, with a target price set above the current price of 75.07 CNY [7]. Core Insights - The company is expected to maintain a positive capacity expansion in the coming years, with three finished shoe factories and one shoe material factory already in operation this year. Additional factories are planned in Indonesia and Vietnam over the next 3-5 years [1]. - The demand for sports shoes remains strong, driven by consumer preferences for comfort and health, indicating a stable market expansion opportunity. Most clients are reporting growth in their performance [2]. - The company emphasizes shareholder returns, with cash dividends accounting for approximately 89% of net profit in 2021 and around 44% in 2023. The company aims to balance shareholder interests with its development needs [3]. - The profit forecast for the company shows expected net profits of 3.89 billion CNY, 4.43 billion CNY, and 4.95 billion CNY for the years 2024, 2025, and 2026 respectively, with corresponding EPS of 3.33 CNY, 3.80 CNY, and 4.24 CNY [4]. Financial Summary - The company's revenue for 2022 was approximately 20.57 billion CNY, with a projected increase to 24.01 billion CNY in 2024, reflecting a growth rate of 19.36% [6]. - The EBITDA for 2022 was about 5.35 billion CNY, expected to rise to 5.85 billion CNY in 2024 [6]. - The net profit attributable to the parent company for 2022 was around 3.23 billion CNY, with projections of 3.89 billion CNY for 2024 [6]. - The company’s P/E ratio is projected to decrease from 27.19 in 2022 to 22.58 in 2024, indicating a potentially more attractive valuation over time [6].
华利集团：关注核心品牌增量